National Association of Realtors (NAR)

DEFINITION of 'National Association of Realtors (NAR)'

The National Association of REALTORS (NAR) is a national organization of real estate brokers, created to promote the real estate profession and foster professional behavior in its members. The association has its own code of ethics to which it requires its members to adhere.

The NAR has over 600,000 members nationwide. It has 50 state associations as well as a number of affiliate organizations.

BREAKING DOWN 'National Association of Realtors (NAR)'

In 2015, the NAR's membership increased to over 1.1 million. It claims to be the largest trade association, comprising real estate brokers, salespeople, property managers, appraisers, counselors as well as others in the real estate industry. Members belong to one or more of the 1,300 local associations/boards and 54 state and territory associations of Realtors or to one of 87 cooperating associations in 66 countries.

Research Division

There is a research division that collects and disseminates real estate data and conducts economic analysis. Delivery of this information takes place via press releases, reports, presentations, and daily blog posts about the overall economy and housing market.

Well-known national and regional housing statistics include existing home sales, pending home sales index and the housing affordability index. The organization releases existing home sales monthly, providing national and regional price and volume statistics. The data is for the past 12 months along with annual totals going back three years. It is broken down into existing single-family homes, condos and co-ops. The first week of each month, the NAR releases the pending home sales index, considered a leading indicator for housing activity. The index measures signed real estate contracts for existing single-family homes, condos and co-ops. The housing affordability index measures whether a typical family earns enough income to qualify for a mortgage loan on an average home based on recent monthly price and income data.

The NAR also provides a host of research reports, including a monthly report on foot traffic, which attempts to predict future sales trends. Others are local market reports, which analyze a host of data, and a confidence index.

Strategic Plan and Benefits

The NAR annually updates its strategic plan to reflect the challenges and opportunities that the association and the real estate industry expect to confront during the next three to five years.

A member of the National Association of Realtors has access to certain benefits, business tools, real estate market data, educational opportunities and discount programs. The National Association of Realtors also has an educational program, including an on-line ethics course.

RELATED TERMS
  1. Realtor

    A real estate professional who is a member of the National Association ...
  2. Realtor Property Resource (RPR)

    A National Association of Realtors member benefit providing realtors ...
  3. Real Estate Agent

    A person with a state/provincial license to represent a buyer ...
  4. Code Of Ethics

    A guide of principles designed to help professionals conduct ...
  5. National Association Of Mortgage ...

    An association that represents the interests of mortgage brokers ...
  6. Real Estate

    Land plus anything on it, including buildings and natural resources.
Related Articles
  1. Home & Auto

    Before you Buy That Home: Find a Great Realtor

    Most people think of a good realtor as a successful salesperson, but we should not assume than that's what makes a great or even a good realtor.
  2. Home & Auto

    10 Habits Of Highly Effective Real Estate Investors

    The best real estate investors all share these traits and practices.
  3. Professionals

    Real Estate Licenses You Would Need in Florida

    Identify the licenses you must obtain to practice real estate in Florida, and learn what is required for a new agent to obtain these licenses.
  4. Home & Auto

    Be Honest

    We'll look at ten habits that help real estate investors build a solid real estate portfolio.
  5. Home & Auto

    Investing In Real Estate

    Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.
  6. Home & Auto

    Can Real Estate Stabilize Your Portfolio?

    History suggests that real estate can provide diversification and a hedge against inflation.
  7. Investing

    How to Invest in Real Estate Without Buying Property

    Investing in real estate can require more capital than most investors have available, but there are options to invest in real estate for less.
  8. Home & Auto

    Introduction To Investment Real Estate

    Real estate, like other investments, carries specific risks and rewards. Find out what investment real estate is and what it can do for you.
  9. Mutual Funds & ETFs

    Add Some Real Estate To Your Portfolio

    From REITs to owning your own home, find out how diversify your portfolio with real estate assets.
  10. Home & Auto

    5 Simple Ways To Invest In Real Estate

    Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds.
RELATED FAQS
  1. What are the differences among a real estate agent, a broker and a realtor?

    Learn how agents, realtors and brokers are often considered the same, but in reality, these real estate positions have different ... Read Answer >>
  2. What economic indicators should an investor in the real estate sector consider?

    Find out about economic indicators and which indicators investors in the real estate sector should take into account before ... Read Answer >>
  3. Why can real estate be a good addition to a traditional stock and bond portfolio?

    Discover why real estate can be a good addition to a traditional stock and bond portfolio. Real estate is affected by economic ... Read Answer >>
  4. How does the risk of investing in the real estate sector compare to the broader market?

    Learn about the high volatility of the real estate sector and how conservative investors gravitate toward real estate investment ... Read Answer >>
  5. What average annual return is typical for a long term investment in the real estate ...

    Learn what the average annual return on real estate investments has been over the past 20 years and how it compares to the ... Read Answer >>
  6. What are the differences between investing in real estate and stocks?

    Invest in real estate by purchasing physical property or buildings, or invest in stocks by buying a claim to a company and ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center